SEM 2 EXAM Flashcards
BUDGETING -
Credit
The ability to buy a good or service and pay for it at some future point
Advantages of paying more than the minimum on a credit card
- Credit score better
- Less interest
- Takes less time to pay off
3 pros for credit cards
-Convenience and easy access
-Buy now pay later
-Rewards such as cash back, miles or points
3 cons for credit cards
-High interest rates
-Temptation in overspending
-Risk of high debt.
Cash budget
A cash budget is a financial plan that shows expected future receipts and expected future payments over a given period of time.
Cash budgets - benefits (3)
-Helps you save and manage your money
-Helps to avoid financial difficulties
-Reflects on your spending habits and areas where you are spending too much money
Construct a personal budget
-Do in your book multiple times with different scenarios
-Include:
> title
> expected cash receipts
> total estimated receipts
> expected cash payments
> total estimated payments
> excess receipts over payments
> bank at beginning
> estimated bank at end
Analyse a budget
- What could be done to achieve goals
- Ways to improve cash position
- Earn more income
- Cut back on some payments
How to know if a website is secure (check)
-https URL has a lock
-URL begins with https not http
-Look for company’s contact info
UNEMPLOYMENT AND EMPLOYMENT-
Superannuation
money set aside that you can access later on when you retire.
Superannuation benefits
-Pay less income tax
-Cheaper, automatic insurance cover
-Discounts and rewards.
Employed
a person is classified as employed if they work more than one hour per week; and receive an income or profit (i.e not volunteer work); if they work in a family business; or if they have a job but cannot work due to illness, strikes or holidays during the survey week.
Unemployment
Unemployment is a situation where people who are willing and able to work are unable to find employment
Measuring Unemployment
The Australian Bureau of Statistics uses Labor Force Surveys to measure the unemployment rate. The Labour Force Survey is selected from around the country.
Unemployed
a person who does not have a paid job who is actively looking for work (completing job applications, registered with Centrelink) in the week prior to the survey.
Limitations of ABS survey results
- Unemployment rate ignores hidden unemployment
- Unemployment rate ignores underemployment
- Misleading survey answers
Calculate the size of the labour force
Employed + Unemployed
Calculate the unemployment rate
No. of unemployed / Labour force X 100/1
Calculate the employment rate
100 - unemployment rate
Interest rate
The amount a lender charges a borrower and is a percentage of the amount loaned
Cyclical Unemployment
Cyclical unemployment occurs when economic spending falls, leading to reduced spending, production, and labor demand. Persistent pessimism can cause a recession, characterised by two consecutive negative economic growth quarters.
Structural Unemployment
Structural unemployment arises from changes in production methods, technology, outsourcing, and higher wages, leading to a mismatch of skills and jobs, job losses, and increased unemployment due to technological advancements and business closures.
Seasonal Unemployment
Seasonal unemployment results from the termination of jobs at the same time each year due to the regular change in seasons.
Common examples of these types of jobs include - fruit picking, tourism, working for holiday operators, sheep shearing and working in the ski fields.
Frictional Unemployment
Frictional unemployment occurs when people are unemployed between finishing one job and starting another. This is common in the building trades and in some areas of rural industry.
Long Term Unemployment
Long term unemployment refers to those people who have been unemployed for 52 consecutive weeks or longer - i.e 1 year or more
Youth Unemployment
Around the world, young people (between 15 and 24 years of age) are more likely to be unemployed compared to the rest of the labour force. In Australia they are 2-2.5 times more likely to be unemployed compared with adults.
Living Standards
Living standards refer to how well off or prosperous individual and the nation are overall. It includes both material well being and non material well being.
Material Well Being
Material well being refers to the enjoyment received from access to goods and services. As production is increased, there are more goods and services available and therefore material living standards increase.
Non Material Well being
Non material well being refers to the quality of life beyond material possessions. It is determined by human relationships, environmental conditions, crime rates, leisure time, education, and health.
Effects of unemployment on individuals: (RFLL)
-Reduced income
-Family unhappiness
-Lower self image
-Less healthy
Reduced income
unemployment benefits are generally lower than income and sometimes lifestyle changes need to occur because of this. Material living standards fall.
Family unhappiness
family tension, stress and violence can increase when someone in the home is unemployed. Non-material living standards fall.
Lower self image
feelings of personal failure due to a loss of status and at times friends. Non-material living standards fall.
Less healthy
sometimes there can be higher incidence of health problems (nervous disorders, heart disease). Non-material living standards fall.
Effects of unemployment on society
Increased crime, vandalism, social unrest, unemployment, and family breakdown which lead to lower material/non living standards, lower GDP, and a decrease in the production of goods and services.
Effects of unemployment on government
The government faces a deficit due to reduced income tax revenue and increased unemployment benefits, resulting in higher expenses for health, law, order, labor market training, and job creation schemes, potentially leading to increased national debt.
TRADE -
Exports
Exports are goods and services that are produced in your country and sold to buyers in another. Australian examples include iron ore & education services to international students.
Imports
An import is a good or service produced abroad but then sold and consumed in your country. Australian examples include manufactured goods such as televisions, clothes and cars.
Tariffs
is a tax imposed by one country on the goods and services imported from another country. For example On 19 May 2020 China imposed a combined 80.5% tariff on Australian barley that we export.
Bi-lateral relationships
Bilateral trade promotes trade and investment by reducing tariffs, import quotas, and export restraints. Australia engages with countries based on strategic and economic outlook, focusing on shared interests and challenges.
Costs of trade (6)
- Dependency on other countries
- Countries may be forced into conflicts
- Economic interests may lead to injustice
- Local unemployment increases & Small companies may go out of business
- High levels of greenhouse gas emissions & Resource depletion
- Big companies may be able to avoid paying taxes
Benefits of trade (7)
- Trade promotes economic growth and raises household incomes
- Trade creates and supports Australian jobs
- Trade makes products cheaper for Australian households and businesses
- Trade gives consumers and business greater choice
- Trade opens the global market for Australian products
- increase living standards in Australia and in the countries we trade with
- Global trade allows wealthy countries to use their resources—for example, labor, technology, or capital—more efficiently.
LONG ARM OF THE LAW -
Explain the difference between rules and laws
Laws - these permit, modify or prohibit the activities of all people in the community
Rules - these determine what behaviour is unacceptable in particular groups or institutions.
Difference between statute and common law
Statute - Government
Common - Court’s
Criminal -
What does criminal law deal with? Who are the offences against?
Criminal law is concerned with cases in which a person has committed an offence against the wellbeing of the community.
What is a summary offence?
A summary offence is a less serious crime (magistrates court)
-Eg, speeding, littering
What is an indictable offence?
An indictable offence is a serious criminal offence that is heard in front of a judge and jury in the county or supreme courts.
-Eg, armed robbery, culpable driving, rape and homicide
Parties involved - criminal?
Prosecution and defendant
Verdict - Criminal
Guilt or not guilty
Punishment - Criminal
Jail, fines, community service
Standard of proof - criminal
Beyond reasonable doubt
- Cannot have any doubt in jury members minds’ that the defendant is guilty
- Jury of 12 (must all agree otherwise becomes a hung jury and try to convince the outlier)
Accused while waiting trial
Bail - let out into community
Remand - in jail
What 2 elements must be proven in a criminal case?
-The physical actions behind the offences (actus reus)
-The mental state or intention behind the crime (mens rea)
Does age determine whether an individual can commit a crime?
Age is a significant factor in determining whether an individual can commit a crime. Children under 10 cannot be held responsible for committing a crime as it is believed they do not know the difference between right and wrong. Children aged between 10-14 are presumed to not understand the consequences of their actions. Those ages 15 and above, can be punished including sanctions, however court may be different to adults (under 18 - children’s court).
Civil -
What is civil law concerned with?
Civil law is protection of individuals and their rights
-Negligence
-Defamation
-Nuisance.
Parties involved? - Civil
Plaintiff and defendant
Verdict - Civil
Liable or not liable
Punishment - Civil
Monetary compensation
Standard of proof? Civil
Balance of probabilities
-How likely that the damages that the plaintiff experienced are the defendant fault
-Can be 5/6 but not lower (otherwise re do the case)
Jurisdiction and court hierarchy -
What is meant by ‘jurisdiction’ and ‘court hierarchy’
Jurisdiction - refers to the authority given to a legal court, to hear and decide cases.
Court hierarchy - is the organisation of courts into different levels, based of how serious and important the cases are. Lower courts handle less serious cases, while higher courts deal with more complex or significant matters and appeals from lower courts.
The hierarchy of the courts
-High court
-Supreme court
-County court
-Magistrate’s court
Supreme court
CRIMINAL
-Judge presides over court
-Very serious cases heard eg homicide, manslaughter and terrorism.
-Jurisdiction includes most serious indictable cases
CIVIL
-Most serious (unlimited amount of damages)
-No maximum or minimum punishment
-Don’t appeal but hear appeals from county and magistrate’s court
County court
CRIMINAL
-Judge presides over court
-Serious cases heard eg serious assaults, drug trafficking, sex offences and dangerous driving causing death.
-Jurisdiction includes serious and indictable offences
CIVIL
-Serious (unlimited amount of damages)
-No maximum or minimum punishment
Both civil and criminal cases appeal to supreme court
Magistrate’s court
CRIMINAL
-Magistrate presides over court
-Less serious cases heard eg property damage, speeding, common assault and theft.
-Jurisdiction includes minor summary offences
CIVIL
-Up to maximum of 100,000 in compensation sought by plaintiff
Both civil and criminal cases appeal to county and supreme court
Magistrate’s court - Coroner’s court
Investigates unexpected or suspicious deaths, including all deaths from fires and drownings. Aim is to find the identity of the person who died, cause of death or the fire.
Magistrate’s court - Children’s court
Purpose is rehabilitation, not punishment.
-Criminal : Where defendant is 10-18 years old when the crime was committed and under 19 when the trail occurs
-Family: Cases for children 0-17 years old who are in need of care and protection due to being ill teated or abused, being abandoned, or having no one to look after them.
Closed court (4)
-Private not public
-People cannot go in and watch
-Often for children and highly sensitive cases
-Always in magistrate’s children courts
What is an appeal and on what grounds can they be heard?
An appeal is when a higher court reviews a lower court’s decision, due to one of the parties asking to go to a higher court. It can be based on legal errors, procedural mistakes, new evidence, or an unreasonable verdict.
Juries -
Criminal juries
- Juries are never found in Magistrates’ court
- Consists of 12 jurors
-Juries are compulsory in all criminal cases
Criminal juries - Verdict
-Juries have to return a unanimous verdict (all 12 jurors must agree
-If this is not possible than a majority verdict known as a hung jury (11 out of 12) occurs and they have to redo the case
Civil juries
-Only 6 jurors
-Optional
Civil juries - Verdict
-Decide liability
-Determine damages to the plaintiff
Empanelment
- Turn 18 and put your name into electoral roll
- Chosen at random & receive a questionnaire
- Complete questionnaire
- Could be found ineligible. If eligible could be disqualified - If eligible and not disqualified attend jury pool
- Could be excused - If not excused wait to be empanelled
DTO -
A Drug Treatment Order is a court order that allows an offender with a drug addiction to receive treatment and support instead of serving a prison sentence. The order typically includes conditions such as regular drug testing, counselling, and rehabilitation programs.
POLITICS-
When and why did Australia become federated? (4)
-1901
-For a better defence force (one defence force compared to six small armies)
-For a common approach to immigration
-To improve trade within Australia
Australian Constitution
-Basic rules for the Australian Government
-It sets out how Australia is governed, outlining the authority, powers and responsibility of the Federal and State Governments
Referendum
-A referendum is a vote to change the constitution.
-In order for a referendum to be successful, it must gain a ‘Yes’ vote by the majority of voters in Australia and a majority in the states (double majority).
Responsibilities of the federal government
-Defence and foreign affairs
-Trade, commerce and currency
-Immigration
Responsibilities of the state government (SHPP)
-Schools
-Hospitals
-Police
-Prisons
Responsibilities of the local government (LPP)
-Local roads and footpaths
-Public health
-Parks
Main source of revenue for federal government
-Receipts from income tax
-Receipts from company tax
Main source of revenue for state government
-Receipts from GST
-Receipts from Stamp Duty
Main source of revenue for local government
-Receipts from property taxes
Structure of Federal Parliament
Upper house - Senate (76 seats)
- elected for 6 years
Lower house - House of Reps (151 seats)
- elected for 3 years
Elections are held every 3 years
Structure of State Parliament
Upper house - Legislative Council (40 members)
Lower house - Legislative Assembly (88 members)
Elections are held every 4 years
What is a coalition?
When two political parties, with similar views, join together to obtain majority of members in the House of Reps
(eg Liberal party and National Party).
What does bi-cameral mean?
Bi-cameral means parliament consists of two houses
Ministers
Members of government who have to represent their electorate AND who have been allocated a specific area of responsibility known as a portfolio (responsible for a government department). Eg; Immigration, Defence and Foreign Affairs and Health Ministers are selected by the Prime Minister.
Portfolios
Government department
Backbenchers
Members of parliament who do not have a portfolio. Their only responsibility is to look after their electorates. They sit at the back and are paid less than ministers.
Governor general
-Sam Mostyn
-The governor general is Australia’s King’s representative
-Oversees the workings of the government to ensure that it is within the boundaries of the Victorian Constitution and the rule of law.
The Senate
-safeguard the interests of all states
-to act as a ‘house of review’ for a bill passed by the House of Reps, as it must be passed by the Senate before it can become law
-to represent the interests of the voters
What is an electorate? (4)
-All the people in a country or area who are entitled to vote in an election.
-Currently there are 151 electorates in AUS (voting districts) and each electorate has approximately 110,000 voters.
-The size of electorates is based on population
-The voters in each electorate vote for one person to represent that area in the House of Representatives.
What does a Cabinet mean in Politics?
The Cabinet is the focal point of the decision-making process of government.
What is the role of the Speaker in the House of Representatives?
The Speaker presides over the sittings of the House and is responsible for its administration.
Voting -
What is an informal vote?
-The ballot paper is not marked at all or is marked with drawings.
-This vote is not counted.
What is a formal vote?
-Where the ballot paper has been filled out correctly (all candidates are numbered in order of preference) and it includes the number 1.
-This vote is counted.
Is a donkey vote formal? How is it set out?
-A donkey vote is a formal vote
-A donkey vote is where the preferences are in the same order as the candidates listed on the ballot paper
What is the difference between preferential voting and first past the post voting?
- Preferential voting is used with members of the House of Reps. In order to win, a candidate must receive 50% + 1 vote. This is called an absolute majority. This voting method ensures the winning candidate has the support of the majority of voters.
- Past the post voting is when the voter only needs to put a mark next to the candidate they want to elect. To be elected a candidate must receive a simple majority of the votes
What type of voting system is used in the Senate?
Proportional Voting
-In this method of voting, candidates must win a certain percentage of the votes. Once the person has achieved this, they will hand on votes to another candidate of the party.
